Toronto Condo Market Continues to Rebalance
Urbanation Inc., the leading source of information and analysis on the Toronto condominium market since 1981, released its Q1-2013 market results today.
A total of 2,728 new condominium apartments were sold in Q1-2013, down by 29% from Q4-2012 and 55% from Q1-2012—which was a record for first quarter sales activity. Sales in Q1-2013 were weighed down by the lowest number of new project openings since Q3-2009.
“The lower volumes seen in the first quarter were not unexpected given how strong the market was throughout 2011 and the first part of 2012. The industry has been cautious in bringing new units to market as sales centre traffic has slowed,” said Shaun Hildebrand, Urbanation’s Senior Vice President.
The number of unsold units in active projects increased during the first quarter to 18,845 units, 21% higher than a year ago. However, the share of active units that are sold held steady at 79%, slightly lower than the five-year average of 80%. The majority of unsold units (64%) are in projects still in the pre-construction sales phase.
The average index price grew by 2.5% annually in the first quarter to $533 psf, a slower pace than the 6.4% average recorded over the past 10 years.
“The market appears well positioned for an improvement through the rest of 2013. More competitive pricing and the upcoming release of some highly anticipated projects in the second quarter should attract a good amount of attention. Activity will remain below recent peaks, but should rise up to a level more consistent with the historical trend this year. An early indicator may be found in the resale numbers, which typically lead the new market during periods of recovery,” added Hildebrand.
Resale condominium apartment sales increased by 9% from the fourth quarter to 3,204 units in Q1-2013 —ranking fourth for a first quarter behind the past three years. Average index prices slipped by 0.5% from a year earlier to $394 psf. Resale prices were weighed down by a jump in listings during the quarter (+25%), partly as a result of an increased number of new registrations at 4,859 units in Q1-2013, 7% of which were listed for resale.